Tesla Shares Shed Gains To Trade Down 5.4% As Analysts Take Mixed View Of Latest Quarter

Tesla Inc. shares reversed their post-earnings gains early Thursday to trade down 5.4%, as analysts weighing in on the electric car maker's latest quarter took a range of views. J.P. Morgan said it expects free cash burn to remain elevated, given the company's guidance for capex of $2.0 to $2.5 billion for the first half, surpassing the $2.3 billion the bank was modeling for the entire year. That makes it more likely the company will raise capital in the near term, as Chief Executive Elon Musk conceded on the earnings call. "Tesla's 4Q results were mixed relative to our expectations, with automotive revenue coming in stronger ($1,994 mn vs. JPM $1,856 mn) but gross margin much softer (22.6% vs. JPM 26.3%), seemingly driven by temporal factors likely to reverse in 2017 (primarily a delayed Autopilot update rollout, which is currently being remedied)," analysts led by Ryan Brinkman wrote in a note. Tesla shares have gained about 46% in the last 12 months, while the S&P 500 has gained 23%.